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ARTICLE · 05 AUGUST 2017

Could U.S. Sanctions Against China Affect Canadian Companies?

LexSage
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There are news reports that President Trump is considering imposing economic sanctions against China. U.S. Ambassador to the United Nations Nikki Haley made comments that suggest that sanctions are on the horizon.

CanadaInternational Law
Cyndee Todgham Cherniak
Cyndee Todgham Cherniak
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There are news reports that President Trump is considering imposing economic sanctions against China.  U.S. Ambassador to the United Nations Nikki Haley made comments that suggest that sanctions are on the horizon (not quite imminent, but no longer unrealistic).

If the United States imposes economic sanctions against China in response to the perceived/real lack of action curtailing the intercontinental ballistic missile testing by North Korea, Canadian companies (and in particular, Canadian corporations with U.S. ownership or U.S. affiliates who are seeking business opportunities in China) would in all likelihood be impacted.  Even though Canada is a separate country from the United States (no, Canada is not another U.S. state), U.S. economic sanctions laws have extra-territorial application.  A Canadian business that breaches U.S. law (and, in certain cases, individuals who are the officers, directors, shareholders and management) could be the subject of a

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